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The British singer's "As Time Goes By...The Great American Songbook: Volume II" entered the charts at No. 2 on sales of 18,200, just behind Dion's French-language album "1 filles & 4 types" which sold 19,300 -- a difference of just over 1,000 in retail sales.
Stewart's first collection of classic tunes, "It Had To Be You: The Great American Songbook," entered the charts at No. 10 and had first-week sales of 6,700 when it was released last October.
Stewart's high debut sent Clay Aiken's "Measure Of A Man" (14,600), Nickelback's "The Long Road" (13,000) and Dido's "Life For Rent" (10,800) down one spot to third, fourth and fifth, respectively.
The Barenaked Ladies' "Everything To Everyone," their first studio effort in three years, came in at No. 6 with sales of 8,200, making it their second highest debut to date. The band's high-water mark was 2000's "Maroon," which debuted at No. 2 with first-week sales of 17,700.
Hilary Duff bucked her downward trend of late by moving up two spots to seventh with "Metamorphosis" (6,800), while the Eagles' latest hits album "The Very Best of The Eagles" (6,500) premiered in eighth.
Obie Trice's "Cheers" (6,300) and Evanescence's "Fallen" (6,200) both fell two spots to ninth and 10th.
Other notable debuts this week include Swollen Members' "Heavy" at No. 14, Lhasa's "Living Road" at No. 16, Rush's live effort "Rush In Rio" at No. 41 and Van Morrison's "What Wrong With This Picture?" at No. 50.
In the U.S., Clay Aikin (224,800) remained at No. 1 for a second week in a row, followed by Rod Stewart (212,300) in second, the Eagles (161,600) in third, OutKast's double CD "Speakerboxxx/The Love Below" (145,000) in fourth, and Ludacris's "Chicken & Beer" (123,100) in fifth.
Here are the 10 best-selling albums in Canada, according to Nielsen SoundScan:
1. CELINE DION -- "1 FILLES & 4 TYPES" (19,300)
2. ROD STEWART -- "THE GREAT AMERICAN SONGBOOK: VOLUME II" (18,200)
3. CLAY AIKEN -- "MEASURE OF A MAN" (14,600)
4. NICKELBACK -- "THE LONG ROAD" (13,000)
5. DIDO -- "LIFE FOR RENT" (10,800)
6. BARENAKED LADIES -- "EVERYTHING TO EVERYONE" (8,200)
7. HILARY DUFF -- "METAMORPHOSIS" (6,800)
8. EAGLES -- "VERY BEST OF THE EAGLES" (6,500)
9. OBIE TRICE -- "CHEERS" (6,300)
10. EVANESCENCE -- "FALLEN" (6,200)